The Dow Jones 30 continues to see a lot of noisy upward momentum, despite the fact that the Middle East flared up yet again.
Dow Jones 30
The Dow Jones 30 has been noisy during the trading session on Monday as we continue to see a lot of volatility. Quite frankly, this is a market that has been bouncing around between the 52,000 level on the bottom and the 53,000 level on the top as we are basically right at the middle. It makes a lot of sense that we will continue to see a lot of back-and-forth action as we're essentially at what has been fair value over the last couple of weeks.
If we break down below the 52,000 level, then obviously it would be negative, but it doesn't necessarily mean that we are changing the trend. In fact, the 50-day EMA sits at 51,200 and rising.
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On the other hand, if we were to turn around and break above the 53,000 level, then it could open up the possibility of a move to the 54,000 level. We've been in a nice uptrend for a while, and there's really no changing that, and it doesn't look like we're anywhere near it despite the fact that there are obvious concerns about the Middle East at the moment.
That being said, it might be worth paying attention to the fact that the Dow Jones 30 is likely to be a bit of a beneficiary as a lot of the larger industrials could get a little bit of a boost for some industries when it comes to a wartime economy. Even if that isn't the case, it's worth noting that the US economy is still fairly strong and therefore the major companies continue to thrive. These companies may not be as attractive or active as technology stocks and all of the hot money names, but the reality is that we have been in a nice uptrend for quite some time, and each dip has proven itself to be a buying opportunity.
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